CHARTER AGREEMENT

NAME OF VESSEL: TYPE:

PORT OF REGISTRY:

FLAG:

This date: and place

Between the Undersigned Parties it has been Agreed as Follows:

OWNER:
ADDRESS:
CHARTERER:
ADDRESS:
Broker:
Broker (Stakeholder):

CHARTER PARTICULARS
CHARTER PERIOD: From Hrs on the
To Hrs on the
PORT OF DELIVERY: PORT OF RE-DELIVERY:
Cruising Area:
Maximum Number of Guests Sleeping ( ) and Cruising ( ) on Board
Crew Consisting of:

CHARTER FEE:

Plus: Advance Provisioning Allowance (A.P.A.) (see Clause 8):

Delivery/Redelivery Fees:
Security Deposit (see Clauses 16 & 17):
To be paid as follows:
FIRST INSTALMENT:
SECOND INSTALMENT:
To the following Broker's Clients’ Account and it shall be deemed paid only when cleared:

CONDITIONS
The CHARTERER shall pay in addition to the Charter Fee and at cost:
 Fuel costs for
the vessel
Its tenders
All watersports equipment
 All harbour, pilot and divers’ fees
 Customs formalities
 Water
 National and/or local taxes as applicable
 Food and beverage for the CHARTERER’s party
 Personal laundry
 Communications costs for the CHARTERER’s party

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 SIGNATURES
OWNER DATE

CHARTERER DATE

BROKER DATE

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CLAUSE 1 AGREEMENT TO LET AND HIRE
The OWNER agrees to let the Vessel to the CHARTERER and not to enter into any other Agreement
for the Charter of the Vessel for the same period.
The CHARTERER agrees to hire the Vessel and shall pay the Charter Fee, the Advance Provisioning
Allowance, the Delivery/Redelivery Fee, the Security Deposit and any other agreed charges, in
cleared funds, on or before the dates and to the Account specified in this Agreement.

CLAUSE 2 DELIVERY
The OWNER shall at the beginning of the Charter Period deliver the Vessel to the Port of Delivery
and the CHARTERER shall take delivery in full commission and working order, seaworthy, clean, in
good condition throughout and ready for service, with full equipment, including up-to-date safety and
life-saving equipment (including life-jackets for children if any are carried in the CHARTERER’s
Party), as required by the Vessel’s registration authority and fitted out as appropriate for a Vessel of
her size and type and enabling the CHARTERER to use the Vessel as set out in Clause 13. The
OWNER does not warrant her use and comfort in bad weather conditions for all cruises or passages
within the Cruising Area.

CLAUSE 3 RE-DELIVERY
The CHARTERER shall re-deliver the Vessel to the OWNER at the Port of Re-Delivery free of any
debts incurred for the CHARTERER’s account during the Charter Period and in as good a condition
as when delivery was taken, except for fair wear and tear arising from ordinary use. The
CHARTERER may, if he wishes, re-deliver the Vessel to the Port of Re-Delivery and disembark prior
to the end of the Charter Period but such early re-delivery shall not entitle the CHARTERER to any
refund of the Charter Fee.

CLAUSE 4 CRUISING AREA

The CHARTERER shall restrict the cruising of the Vessel to within the Cruising Area and to within
regions in the Cruising Area in which the Vessel is legally permitted to cruise. The CHARTERER
shall also restrict time under way to an average of six (6) hours per day, unless the Captain, at his sole
discretion, agrees to exceed this time.

CLAUSE 5 MAXIMUM NUMBER OF PERSONS - RESPONSIBILITY FOR CHILDREN - HEALTH OF

THE CHARTERER’S PARTY
a) The CHARTERER shall not at any time during the Charter Period permit more than the Maximum
Number of Guests Sleeping or Cruising on Board plus, at the sole discretion of the Captain, a
reasonable number of visitors whilst the Vessel is securely moored in port.
b) If children are taken on board, the CHARTERER shall be fully responsible for their conduct and
entertainment and no member of the crew shall be held responsible for their conduct or entertainment.
c) The nature of a charter may render it unsuitable for anybody with physical disability or undergoing
medical treatment. By signature of this Agreement the CHARTERER warrants the medical fitness of
all members of the CHARTERER’s party for the voyage contemplated by this Agreement. The
CHARTERER and his party undertake to have all necessary visas and vaccinations for the countries
to be visited.

CLAUSE 6 CREW
The OWNER shall provide a suitably qualified Captain acceptable to the insurers of the Vessel and a
suitably experienced Crew, properly uniformed, fed and insured. The OWNER shall ensure that no
member of the Crew shall carry or use any illegal drugs on board the Vessel or keep any firearms on
board (other than those declared on the manifest) and shall ensure that the Captain and Crew comply
with the laws and regulations of any country into whose waters the Vessel shall enter during the
course of this Agreement.

CLAUSE 7 CAPTAIN’S AUTHORITY

The OWNER shall ensure that the Captain shows the CHARTERER the same attention as if the
CHARTERER were the OWNER. The Captain shall comply with all reasonable orders given to him
by the CHARTERER regarding the management, operation and movement of the Vessel, wind,

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 weather and other circumstances permitting. The Captain shall not, however, be bound to comply with
any order which, in the reasonable opinion of the Captain, might result in the Vessel moving to any
port or place that is not safe and proper for her to be in, or might result in the CHARTERER failing to
re-deliver the Vessel upon the expiration of the Charter Period, or would, in the reasonable opinion of
the Captain, cause a breach of Clause 13 and/or any other clause of this Agreement. Further, without
prejudice to any other remedy of the OWNER, if, in the reasonable opinion of the Captain, the
CHARTERER or any of his Guests fail to observe any of the provisions in Clause 13 and if such
failure continues after the Captain has given due and specific warning to the CHARTERER in writing
in respect of the same, the Captain shall inform the OWNER and the Broker(s) and the OWNER may
terminate the Charter forthwith or instruct the Captain to return the Vessel to the Port of Re-Delivery
and upon such return the Charter Period shall be terminated. The CHARTERER and his guests shall
disembark, the CHARTERER having settled all outstanding expenses with the Captain beforehand
and the CHARTERER shall not be entitled to be refunded any of the Charter Fee.
With particular regard to the use of watersports equipment, as defined in Clause 16, the Captain shall
have the authority to exclude the CHARTERER or any or all of his Guests from use of any particular
watersports equipment if, in his reasonable opinion, they are not competent, are unsafe, are behaving
in an irresponsible manner, or are failing to show due concern for other persons when operatine this
equipment.

CLAUSE 8 OPERATING COSTS

The CHARTERER shall be responsible for the operating costs, as specifically defined under
“CONDITIONS” on Page One of this Agreement, for the entire Charter Period for himself and his
Guests. Having paid the Advance Provisioning Allowance (A.P.A.) via the Broker’s Account, as
required by this Agreement, the CHARTERER shall be advised by the Captain, at intervals, as to the
disbursement of the A.P.A. and shall, if the balance remaining becomes insufficient, in the light of
current expenditure, pay to the Captain, a sufficient sum to maintain an adequate credit balance. The
OWNER shall ensure the Captain will exercise due diligence in the expenditure of the A.P.A.
Prior to disembarkation at the end of the Charter Period, the Captain shall present to the
CHARTERER a detailed account of expenditure with as many supporting receipts as possible, and the
CHARTERER shall pay to the Captain the balance of the expenses, or the Captain shall repay to the
CHARTERER any balance overpaid, as the case may be.
Payment for special requirements or equipment, shore transport or excursions or any other expenses
not customarily considered part of the Vessel’s operating costs may be required to be paid via the
Broker’s account in advance or to the Captain on boarding in addition to the A.P.A.
Unless specific alternative arrangements have been made in writing, in advance, all payments for
operating costs etc. shall be payable in the same currency as the Charter Fee. Payment by cheque,
credit card or other negotiable instrument is not normally acceptable due to the itinerant nature of the
Vessel’s seasonal schedule and the CHARTERER should therefore ensure that he has sufficient funds
available to cover all reasonably foreseeable expenses or arrange to deposit additional funds with the
Broker.

CLAUSE 9 DELAY IN DELIVERY

a) If, by reason of force majeure (as defined in Clause 18 (a)), the OWNER fails to deliver the Vessel
to the CHARTERER at the Port of Delivery at the commencement of the Charter Period and delivery
is made within forty-eight (48) hours of the scheduled commencement date, or within one tenth
(1/10th) of the Charter period, whichever period is the shorter, the OWNER shall pay to the
CHARTERER a refund of the Charter Fee at a pro rata daily rate or if it be mutually agreed the
OWNER shall allow a pro rata extension of the Charter period.
FAILURE TO DELIVER
b) If by reason of force majeure the OWNER fails to deliver the Vessel within forty-eight (48) hours
or a period equivalent to one-tenth (1/10th) of the Charter Period, whichever period is the shorter,
from the due time of delivery, the CHARTERER shall be entitled to treat this Agreement as
terminated. The CHARTERER’s exclusive remedy will be to receive repayment without interest of
the full amount of payments made by him to the OWNER or Stakeholder. Alternatively, if the parties
mutually agree, the Charter Period shall be extended by a time equivalent to the delay.
c) If the OWNER fails to deliver the Vessel at the Port of Delivery at the commencement of the
Charter Period other than by reason of force majeure; the CHARTERER shall be entitled to treat this

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 Agreement as repudiated by the OWNER. The CHARTERER will be entitled to repayment without
interest of the full amount of all payments made by him to the OWNER or Stakeholder, and shall in
addition be paid by the OWNER liquidated damages of an amount equivalent to fifty percent (50%) of
the Charter Fee.
CANCELLATION BY OWNER
d) If prior to the commencement of the Charter Period as set out in Page One of this Agreement, the
OWNER tenders notice of cancellation via the Broker and if the cancellation is by reason of force
majeure, the remedy in (b) above shall apply.
e) If the cancellation is for any reason, other than force majeure, the CHARTERER shall be entitled to
repayment without interest of the full amount of all payments made by him to the OWNER or
Stakeholder, and shall in addition be entitled to liquidated damages to be calculated and paid forthwith
on the following scale:
i) thirty (30) days or more before commencement of the Charter Period, an amount equivalent to
twenty five percent (25%) of the Charter Fee.
ii) more than fourteen (14) days but less than thirty (30) days before commencement of the Charter
Period, an amount equivalent to thirty five percent (35%) of the Charter Fee.
iii) fourteen (14) days or less before commencement of the Charter Period, an amount equivalent to
fifty percent (50%) of the Charter Fee.

CLAUSE 10 DELAY IN RE-DELIVERY

a) If re-delivery of the Vessel is delayed by reason of force majeure, re-delivery shall be effected as
soon as possible thereafter and in the meantime the conditions of this Agreement shall remain in force
but without penalty or additional charge against the CHARTERER.
b) If the CHARTERER fails to re-deliver the Vessel to the OWNER at the Port of Re-Delivery due to
intentional delay or change of itinerary against the Captain’s advice, then the CHARTERER shall pay
forthwith to the OWNER by direct telegraphic transfer via the Broker/Stakeholder’s Account
demurrage at the daily rate plus forty percent (40%) of the daily rate, and if delay in re-delivery
exceeds twenty-four (24) hours, the CHARTERER shall be liable to indemnify the OWNER for any
loss or damage which the OWNER shall suffer by reason of deprivation of use of the Vessel or
cancellation of, or delay in delivery under any subsequent charter of the Vessel.

CLAUSE 11 CANCELLATION BY CHARTERER

a) i) Should the CHARTERER give notice of cancellation of this Agreement on or at any time
before the commencement of the Charter Period the CHARTERER shall remain liable for all
payments due to the OWNER prior to and unpaid at the date of cancellation.
Should notice of cancellation be given by the CHARTERER or should the CHARTERER fail
after having been given notice to pay any amount due under this Agreement, the OWNER
shall be entitled to treat this Agreement as having been repudiated by the CHARTERER and
to retain the full amount of all payments.
Notwithstanding the OWNER’s right to receive or retain all payments referred to above, the
OWNER shall be under a duty to mitigate his loss and in the event that the OWNER is able
to re-let the Vessel for all or part of the Charter Period under this Agreement, the OWNER
will give credit for the net amount of charter hire arising from the re-letting after deduction of
all commissions and other consequential expenses arising from such re-letting. The intention
is that the OWNER shall receive the same in net proceeds from any re-letting as would have
been received under this Agreement. The OWNER shall use his best endeavours to re-let the
Vessel and shall not unreasonably withhold his agreement to re-let, although charters which
may reasonably be considered detrimental to the Vessel, its reputation, its crew or its
schedule may be refused.
ii) If prior to the date of cancellation the Vessel has taken on provisions for the Charter, or
has utilised the Delivery/Redelivery Fee as set out on Page One of this Agreement, then the
CHARTERER shall pay for these expenses unless all or part can either be refunded by the
supplier or transferred to the next charter, in which case they shall be adjusted accordingly.
The Captain and OWNER shall be under a duty to mitigate these expenses where possible.
b) If, after signature of this Agreement, the OWNER is adjudged bankrupt or, in the case of a
company, a liquidator, receiver or administrator is appointed over all or part of the OWNER’s assets,

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 the CHARTERER shall be entitled to cancel the Charter and all monies paid to the OWNER, his
agent, or the Stakeholder pursuant to this Agreement shall be refunded without deduction.

CLAUSE 12 BREAKDOWN OR DISABLEMENT

If after delivery the Vessel shall at any time be disabled by breakdown of machinery, grounding,
collision or other cause so as to prevent reasonable use of the Vessel by the CHARTERER for a
period between twelve (12) and forty-eight (48) consecutive hours or one tenth of the Charter Period,
whichever is the shorter (and the disablement has not been brought about by any act or default of the
CHARTERER) the OWNER shall make a pro rata refund of the Charter Fee for the period of the
disablement or, if mutually agreed, allow a pro rata extension of the Charter Period corresponding
with the period of disablement. If the CHARTERER wishes to invoke this clause he shall give
immediate notice in writing to the Captain. The CHARTERER shall remain liable for normal
expenses during the period of disablement.
In the event of the actual or constructive total loss of the Vessel or if the Vessel is disabled as
aforesaid for a consecutive period of more than forty-eight (48) hours or one tenth of the Charter
Period, whichever is shorter, the CHARTERER may terminate this Agreement by notice in writing to
the OWNER or the Broker(s) or to the Captain if no means of communication is available. As soon as
practicable after such termination the Charter Fee shall be repaid by the OWNER pro rata without
interest for that proportion of the Charter Period outstanding after the date and time on which the loss
or disablement occurred. In the event of such termination the CHARTERER may effect redelivery by
giving up possession of the Vessel where she lies. The CHARTERER shall be entitled to recover from
the OWNER the reasonable cost of returning the charter party to the port of re-delivery by scheduled
services together with reasonable accommodation expenses incurred.
Alternatively, after a consecutive period of disablement of more than forty-eight (48) hours or one
tenth of the Charter Period, whichever the shorter, and dependent on the nature and seriousness of the
disablement, by mutual agreement the Charterer may elect to remain on board for the duration of the
Charter Period and the CHARTERER will then have no further or additional claim against the
OWNER.

CLAUSE 13 USE OF THE VESSEL

The CHARTERER shall comply, and shall ensure that the Guests comply, with the laws and
regulations of any country into whose waters the Vessel shall enter during the course of this
Agreement.
The CHARTERER shall ensure that no pets or other animals are brought on board the Vessel without
the consent in writing of the OWNER. The CHARTERER shall ensure that the behaviour of the
charter party shall not cause a nuisance to any person or bring the Vessel into disrepute. The
CHARTERER and guests shall afford the crew due respect at all times.
The Captain shall promptly draw the CHARTERER’s attention to any infringement of these terms by
himself or his Guests, and if such behaviour continues after this warning, the Captain shall inform the
OWNER or his Broker, and the OWNER may, by notice in writing given to the CHARTERER,
terminate this Agreement in accordance with Clause 7 of this Agreement.
If the CHARTERER or any of the Guests shall commit any offence contrary to the laws and
regulations of any country which results in any member of the crew of the Vessel being detained,
fined or imprisoned, or the Vessel being detained, arrested, seized or fined, the CHARTERER shall
indemnify the OWNER against all loss, damage and expense incurred by the OWNER as a result, and
the OWNER may, by notice to the CHARTERER, terminate this Agreement forthwith.
It is also specifically understood that the possession or use of any illegal drugs or any weapons
(including particularly firearms) is strictly prohibited on board the Vessel and failure to comply shall
be sufficient reason for the OWNER to terminate the Charter forthwith without refund or recourse
against the OWNER.

CLAUSE 14 NON-ASSIGNMENT
The CHARTERER shall not assign this Agreement, sub-let the Vessel or part with control of the
Vessel without the consent in writing of the OWNER, which consent may be on such terms as the
OWNER thinks fit.

CLAUSE 15 SALE OF THE VESSEL

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 a) The OWNER agrees not to sell the Vessel during the Charter Period as set out on Page One of this
Agreement.
b) Should the OWNER agree to sell the Vessel after the signing of this Charter Agreement, but before
delivery to the CHARTERER, the OWNER shall immediately give notice of such sale in writing to
the CHARTERER via the Broker. This information shall be kept in strict confidence by all parties to
the Agreement.
Should the Vessel be sold one of the following provisions will apply:
i)The OWNER shall arrange for the Buyer to perform the Charter on the same terms and
conditions by assignment of this Charter Agreement.
Where the Charter is taken over by the Buyer on the same terms and conditions there shall be
no penalty against the OWNER and no additional commission due to the Broker.
ii) If the Buyer is unwilling or unable to fullfil the Charter Agreement, the OWNER hereby
appoints the Broker to procure the Charter of a replacement Vessel of similar or superior
standard and condition for the Charter Period. If a suitable replacement Vessel is found a new
Charter Agreement shall be prepared and this original Agreement cancelled. The OWNER
shall pay the Broker’s commission on the original Charter and the Broker may retain any
commission due on the replacement Vessel.
iii) Should the OWNER be unable to obtain a similar or superior Vessel for the use of the
CHARTERER on the same terms as this original Agreement or should the CHARTERER
reject the proposed replacement (the CHARTERER shall not unreasonably reject a substitute
Vessel of same or superior standard) then this Charter Agreement shall be considered as
having been cancelled by the OWNER in accordance with Clause 9. All payments made by
the Charterer shall be promptly repaid in full to him without deduction, and in addition
liquidated damages calculated in accordance with Clause 9 (e), i, ii or iii as appropriate shall
be paid. The Broker shall be paid by the OWNER the full commission due on this original
Agreement.

CLAUSE 16 INSURANCE
a) The OWNER shall insure the Vessel with first-class insurers against all customary risks for a
Vessel of her size and type on cover no less than is provided under Institute Yacht Clauses 1.11.85 or
other recognised terms extended to provide Permission to Charter and to cover Third Party liability,
Water Skiers liabilities together with liabilities arising from the use by the CHARTERER and other
competent person(s) authorized by him of personal water craft and other similar powered craft as well
as windsurfers, dinghies, catamarans or other water-sports equipment carried by the Vessel. The
insurance shall also cover War and Strikes and include insurance of Crew against injuries and/or Third
Party liabilities incurred during the course of their employment. The CHARTERER shall be entitled
to the benefit of the OWNER’s insurances.
b) All such insurances shall be on such terms and subject to such excess (deductible) as are customary
for a Vessel of this size and type. Copies of all relevant insurance documentation shall be available for
inspection by the CHARTERER prior to the Charter on reasonable notice to the OWNER, and shall
be carried on board the Vessel.
c) Under normal circumstances the CHARTERER shall only be liable for such costs or losses as may
be incurred repairing damage caused by the CHARTERER or his guests (intentionally or otherwise) to
the Vessel or any third party up to the level of the Excess (Deductible) on the OWNER’s insurance
policy for each separate accident or occurrence. However, in any event, the CHARTERER’s liability
shall not exceed an excess (deductible) the equivalent of one percent (1%) of the total sum insured.
d) The CHARTERER may be liable for a sum greater than the Excess (Deductible) on any one
accident or occurrence if the CHARTERER or any of his guests acted in such a manner (intentionally
or otherwise) as to void, or limit, the cover under the OWNER’s insurance.
e) The CHARTERER shall carry independent insurance for Personal Effects whilst on board or ashore
and for any Medical or Accident expenses incurred other than as covered under the Vessel’s
insurance.
f) The CHARTERER should be aware that neither Cancellation and Curtailment Insurance, nor
CHARTERER’s Liability Insurance is included in this Agreement but is available subject to
acceptance by Underwriters.

CLAUSE 17 SECURITY DEPOSIT

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 Unless otherwise provided on Page One of this Agreement, the Security Deposit shall be held by the
Stakeholder in his Stakeholder’s Account on the OWNER’s behalf and may be used in, or towards,
discharging any liability that the CHARTERER may incur under any of the provisions of this
Agreement, but to the extent that it is not so used, the Security Deposit shall, within twenty-four (24)
hours of the end of the Charter Period, or the settlement of all outstanding questions, whichever is the
later, be refunded to the CHARTERER without interest.

CLAUSE 18 DEFINITIONS
a) FORCE MAJEURE
In this Agreement ‘force majeure’ means any cause directly attributable to acts, events, non-
happenings, omissions, accidents or Acts of God beyond the reasonable control of the OWNER or the
CHARTERER (including, but not limited to, strikes, lock-outs or other labour disputes, civil
commotion, riots, blockade, invasion, war, fire, explosion, sabotage, storm, collision, grounding, fog,
governmental act or regulation, major mechanical or electrical breakdown beyond the crew’s control
and not caused by OWNER’s negligence). Crew changes do not constitute force majeure. Force
majeure does not excuse the OWNER from payment of commissions.
b) OWNERS, CHARTERERS AND BROKERS
Throughout the Agreement, the terms ‘OWNER’, ‘CHARTERER’ and ‘Broker’ and corresponding
pronouns shall be construed to apply whether the OWNER, CHARTERER or Broker is male, female,
or corporate, singular or plural, as the case may be.

CLAUSE 19 SALVAGE
During the period of the charter, the benefits, if any, from all derelicts, salvages and towages, after
paying the crew’s proportion, hire for the relevant period and expenses, shall be shared equally
between the OWNER and the CHARTERER.

CLAUSE 20 ARBITRATION & LAW

Unless otherwise specified in the appropriate space on Page One of this Agreement, any dispute in
connection with the interpretation and fulfilment of this Agreement shall be decided by arbitration in
Lugano and in accordance with the laws of Switzerland. The dispute shall be referred to a single
Arbitrator to be appointed by the parties hereto.
If the parties cannot agree upon the appointment of a single Arbitrator, the dispute shall be settled by
three Arbitrators, each party appointing one Arbitrator, the third being appointed by the current
President of the Mediterranean Yacht Brokers Association or the American Yacht Charter
Association.
Appointment of Arbitrators, or substitution of Arbitrators who are not available, shall be made within
two (2) weeks of written notice by the other party, failing which the President of the Association
appointing the third Arbitrator shall also appoint an Arbitrator on behalf of the party who fails to
appoint one.
The award rendered by the Arbitration shall be final and binding upon both parties and may if
necessary be enforced by the Court or any other competent authority in the same manner as a
judgement in High Court.
If notice of arbitration proceedings is given by either party, the Stakeholder, after receiving
notification of such proceedings, shall not deal with those monies held by them without the agreement
of both parties or in accordance with the order of the Arbitrators or their final award. The monies
should be held in a designated client account. This account should be interest bearing where national
banking rules permit. The Stakeholder may, with the agreement of both parties, pay the monies into an
escrow account jointly controlled by the accredited legal representatives of both parties pending the
result of the Arbitration.

CLAUSE 21 BROKERS
The Brokers shall sign this Agreement for the purposes of this Clause only. By their signatures to this
Agreement the OWNER and the CHARTERER both confirm and agree to the following:-
 The Brokers’ commission shall be deemed to be earned by the Broker(s) upon the signing of this
Agreement and be payable by the OWNER on the full Charter Fee plus the Delivery/Redelivery
Fee, if applicable, but excluding running expenses, according to Clause 22 below, whether or not

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 he defaults for any reason including force majeure. In the event of Cancellation by the
CHARTERER, the commission shall be deducted as an expense from the deposit.
 If the CHARTERER should extend this Charter, the Brokers shall be entitled to and shall be paid
by the OWNER, commission on the gross Charter Fee for the extension, on the same basis as
provided herein.
 If the CHARTERER should re-charter the Vessel from the OWNER, his Agent or the
Stakeholder, within two (2) years from the date of completion of this Charter, whether or not on
the same terms, then the Brokers shall be entitled to, and shall be paid by the OWNER,
commission on the gross Charter Fee paid for that further charter upon the same basis as provided
herein. However, if the CHARTERER should choose to re-charter the Vessel within this two-year
period via another bona fide Broker, to whom the commission is being paid, the OWNER shall
pay a commission of one-third (1/3rd) of the full rate to the original Broker and two-thirds
(2/3rds) to the new Broker. This only applies following the free choice of the CHARTERER and
is not relevant if the change of broker is suggested or solicited by the OWNER, his agent, Captain
or representative.
 If any Agreement should be reached directly between the CHARTERER and the OWNER for the
purchase of the Vessel within two (2) years from the date of commencement of this charter then
the Broker(s) shall be entitled to and be paid by the OWNER the sales commission. However,
should the CHARTERER purchase the Vessel from the OWNER via a bona fide Sales Broker to
whom the commission is being paid then the OWNER shall pay, or shall ensure that the new
Broker shall pay, a sum equivalent to not less than fifteen (15%) percent of the gross sales
commission. It is the responsibility of the OWNER to advise any future Sales Broker of this
liability. This only applies following the free choice of the CHARTERER and is not relevant if
the change of broker is suggested or solicited by the OWNER, his agent, Captain or
representative. Any dispute under this Clause may be separately arbitrated.
 The Brokers in this Agreement shall have no responsibility for any loss, damage or injury to the
person or property of the OWNER or CHARTERER or any of their Guests, servants or agents,
and further the Brokers shall be under no liability for any errors of judgement or description or
otherwise of whatsoever nature and howsoever arising and shall be under no further obligation,
duty or responsibility to the OWNER or the CHARTERER save as set out herein. The OWNER
and the CHARTERER shall jointly and severally indemnify and hold harmless the Brokers for
any loss or damage sustained by them as a result of any liability by the Brokers to any Third Party
(person, firm, company or authority) arising from promoting or introducing this Charter, assisting
in the performance of this Agreement or performing the duty of Stakeholder.
 For the purposes of this Clause, the terms OWNER and CHARTERER shall be understood to
mean the named company or individual, or any company owned or controlled by them including
companies owned indirectly or via Trustees, any Director of such a company, Beneficial Owner,
Nominee, Agent or Charterer’s Guest.

CLAUSE 22 PAYMENT OF CHARTER FEES AND OTHER MONIES TO THE OWNERS

All funds received by the Broker(s) against this Agreement shall be transferred immediately upon
receipt to the Stakeholder (if the first Broker is not the Stakeholder) and then held by the Stakeholder
in a designated Account in the currency of this Agreement. Fifty percent (50%) of the Charter Fee
shall be paid to the OWNER by the Stakeholder after deduction of the full commission by Bank
Transfer on the date of commencement of the Charter Period or on the first working day thereafter.
The Advance Provisioning Allowance (A.P.A.) shall be paid by the Stakeholder, to the Captain, or to
the OWNER for onward transmission to the Captain prior to embarkation, by Bank Transfer. The
Delivery and/or Redelivery fees (if applicable) shall either be paid with the first payment to the
OWNER or directly to the Captain. The balance of the Charter Fee shall be paid to the OWNER on
the first working day following completion of the Charter Period.

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CLAUSE 23 COMPLAINTS
The CHARTERER shall give notice of any complaint in the first instance to the Captain on board and
note shall be taken of the time, date and nature of the complaint.
If, however, this complaint cannot be resolved on board the Vessel then the CHARTERER shall give
notice to the OWNER or to the Broker on the OWNER’s behalf as soon as practicable after the event
giving rise to the complaint has taken place and anyway within twenty-four (24) hours of the event or
occurrence unless it is impracticable due to failure or non-availability of communications equipment.
The complaint may be made verbally in the first instance but shall be confirmed as soon as possible in
writing (by fax or mail) specifying the precise nature of the complaint.

CLAUSE 24 NOTICES
Any notice given or required to be given by either Party to this Agreement shall be communicated in
any form of writing and shall be deemed to have been properly given if proved to have been
dispatched pre-paid and properly addressed by mail or bona fide courier service or by fax in the case
of the OWNER, to him or to the Broker at their addresses as per this Agreement or, in the case of the
CHARTERER, to his address as per this Agreement or, where appropriate, to him on board the
Vessel.

Vicolo Nassetta 2 – 6901 LUGANO – SVIZZERA -